MANILA: The Philippines has paved the way for a massive infrastructure program, as parliament on Dec. 13 formally approved the first phase of President Rodrigo Duterte’s tax reforms. The country’s Senate and House of Representatives ratified a reconciled version of their respective tax bills after concluding deliberations on the night of Dec. The reforms will generate 90 billion pesos ($1.78 billion) in additional revenue, lower than the initial estimate of 130 billion pesos, the Finance Department said. Finance Secretary Carlos Dominguez said the government now can “begin a really serious infrastructure program.” Duterte hopes to spend around $160 billion during his six year term into 2022 to usher in what his economic managers call the “golden age of infrastructure.” His administration expects the program to slash the nation’s poverty rate from 21.6% to 14% over that time.
The legislation reduces personal income tax but raises excise taxes on coal, petroleum, cars, sugar-sweetened beverages, cosmetic surgery and other items. An average taxpayer would gain around 20,000 pesos annually from the income tax cuts, Dominguez said, more than the minimum monthly salary in Manila.
